Adkins Company is hired on December 15, 2026 to perform services, beginning on December 16, 2026. Under this agreement, Adkins will earn $3,600 monthly and receive payment on January 15, 2027. What amount of service revenue should be recorded for the year ending December 31, 2026?

Adkins Company is hired on December 15, 2026 to perform services, beginning on December 16, 2026. Under this agreement, Adkins will earn $3,600 monthly and receive payment on January 15, 2027. What amount of service revenue should be recorded for the year ending December 31, 2026?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 2MCQ: In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in...

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In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in December 2019 and a cash payment of S4,500 for services to be performed in January 2020. Swanstrom also receives the December utility bill for S600 but does not pay this bill until 2020. For 2019, under the accrual basis of accounting, Swanstrom would recognize: a. $8,000 of revenue and $600 of expense. b. $8,000 of revenue and $0 of expense. c. $3,500 of revenue and $600 of expense. d. $3,500 Of revenue and $0 of expense.
The financial year of Abi Sy ends on December 31 each year. On May 30, 2022, Abi Sy received an annual service fee of P600,000 from a customer for a service commencing on June 1. What should be presented on Dec. 31, 2022? P250,000 should be treated as unearned revenues. P300,000 should be treated as unearned revenues. P600,000 should be treated as unearned revenues. P600,000 should be treated as revenues for the current financial year.
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